We offer a value-added managed solution for 401(k) plans, whether the investment portfolios are trustee or participant directed. Our goal is to provide plan participants with the advantages of our dynamic, forward-looking investment process so they realize the benefits of incorporating both top-down and bottom-up allocation and management.
For plans where participants direct their own investment accounts, we offer strategies with actively managed asset allocations. Our selections provide a strategy for most every participant circumstance, cover the breadth of the risk/return spectrum, and are designed to fit within the safe harbor provisions of ERISA 404(c). We also provide a Qualified Default Investment Alternative (QDIA) to further protect plan fiduciaries.
We believe our managed approach addresses the potential deficiencies inherent in many other 401(k) platforms, which offer a menu of mutual funds that cover a range of asset classes. This “menu” format forces non-expert participants into the undesirable role of managing their own asset allocations by choosing among these funds. Research has shown that individuals have a very poor track record when it comes to managing their mutual fund investments.
Other providers have sought to address the shortcomings inherent in this "menu" approach by adding Target Date funds and Model Portfolios. Unfortunately, the portfolio allocations for these solutions generally do not adjust as opportunities and risks emerge in the financial markets. Yet, we believe that making these adjustments is critical to long-term success, especially during periods when asset prices are severely declining.
In contrast, our strategies actively manage the asset allocation as economic and financial environments change. It’s an approach that seeks to take advantage of opportunities and steer away from risks so participants do not have the burden of making these judgments. Once your participant selects the appropriate strategy for their circumstances, they can be confident that our investment team is making the necessary allocation adjustments on their behalf whenever market conditions change.